Frank Financial has always independently managed his personal investment portfolio. After a 25year career as a chemical engineer with a large chemical company. Frank retired and on January 1. 2020. opened an investment advisoiy business incorporated as F&F Financial Planning LLC. Frank was eager to share his knowledge and investing experience with people in similar positions to himself; that is. those who have recently retired. Also. Frank has discovered there is an unmet need for financialplanning advice for people living in rural areas. Through his elderly parents. Frank has learned that there are many seniors who cannot, or prefer not to. drive to larger cities for nancialplanning help. Therefore, unlike other financial- planning firms. Frank drives to his sometimesremote rural clients who can be many kilometres from his home. During the first year of operations Frank's company built a veiy favourable reputation with his clients. and he quickly built his client list to 35 {which is the maximum he plans to serve]. However. despite success in attracting clients. his rm has been losing several thousands of dollars each year. Prior to offering his services. Frank had investigated client fee structures of several other firms. He discovered that some firms charge clients based on a percentage of the dollar amount invested by the client. some combine a fixed annual fee with a smaller percent of client investment amounts. and others charge an hourly fee only. Frank wanted to keep it simple for his clients and decided to charge only a fixed monthly fee for each client in the first two years. However. because of an operating loss again in 2022, Frank is looking for help from you to analyze his financial results and he is seeking advice on how to structure (Le. fixed versus variable] client fees in 2023. Over the past few years of operations he has found that some clients require very little time. while others call frequently and demand regular visits and monthly hard copies of statements. Also. many older clients do not have internet or email access and prefer facetoface meetings. Therefore, Frank is considering a future fee structure not currently being used in the industry: specifically. he would like to charge an annual fixed fee combined with a variable portion based on time spent by him and his assistant on each client account (this information has been carefully tracked]. He believes this would better reflect the costs incurred to service his 35 clients. Because most clients are in mral areas. on average. more than 90% ofFrank's time is spent driving to and from the client. The firm employs an assistant to help with administrative responsibilities. and this person works 20 hours per week out of Frank's home office. Frank also contracted with another local person to help once a month with the preparation and mailing of a monthly investment news and portfolio update. The following is the operating results of F&F Financial Planning for the past full year of 2022. Cost categories: Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Financial planner salary (Frank Financial) $6,200 $6,200 $6,200 $6,200 $6,200 $6,200 $6,200 $6,200 $6,200 $6,200 $6,200 $6,200 Assistant salary (extra quarter-end help) 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 Internet subscription 140 140 140 140 140 140 140 140 140 140 140 140 Bloomberg monthly data feed 115 115 115 115 115 115 115 115 115 115 115 115 Depreciation (office equipment) 75 75 75 75 75 75 75 75 75 75 75 75 Depreciation (car) 385 385 385 385 385 385 385 385 385 385 385 385 Car - road side assist., Mice and Gas 504 312 303 345 279 90 97 197 254 351 275 275 Supplies 676 530 525 579 540 462 499 525 525 567 525 504 Insurance 98 98 98 98 98 98 98 98 98 98 98 98 Portfolio information and mailing 38 30 15 23 19 8 14 13 15 30 13 16 Utilities 152 126 116 131 118 97 109 117 125 138 116 122 $9,633 $9,261 $9,222 $9,341 $9,219 $8,920 $8,982 $9,115 $9,182 $9,349 $9,192 $9,180 Total Hours with clients 239 151 145 152 111 20 21 56 87 154 107 112 (includes driving time)Require d: 1. Determine the independent variable and use the 2022 data above to determine which costs are variable (V), mixed (M), or xed (F). 2. Use the highlow method to separate xed costs per month and the variable costs. 3. Recommend to Frank a fee structure for the rest of the year [2023), assuming his goal is to cover his total costs (including Frank's annual salary}. The fee should include a fixed cost per client based on the stated maximum of 35 clients and a variable portion (your answer should be stored clearly enough so your client t-vonio' eosr'fy understand now they will! be charged for yo or service), 4. Can you suggest a better way to calculate a variable rate to charge Frank's customers? For example, maybe using kilometers as an independent variable (versus hours with client}. If so, explain briey (in a paragraph) how this would work